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Constellium Reports Second Quarter 2022 Results

Finance

Constellium SE (NYSE: CSTM) today reported results for the second quarter ended June 30, 2022.

Second quarter 2022 highlights:

  • Shipments of 424 thousand metric tons, up 4% compared to Q2 2021
  • Revenue of €2.3 billion, up 50% compared to Q2 2021
  • Value-Added Revenue (VAR) of €704 million, up 22% compared to Q2 2021 
  • Net loss of €32 million compared to net income of €108 million in Q2 2021
  • Adjusted EBITDA of €198 million, up 17% compared to Q2 2021
  • Cash from Operations of €111 million and Free Cash Flow of €60 million
  • Repaid €180 million PGE French Facility and CHF 15 million Swiss Facility

 

First half 2022 highlights:

  • Shipments of 825 thousand metric tons, up 4% compared to H1 2021
  • Revenue of €4.3 billion, up 49% compared to H1 2021
  • VAR of €1.4 billion, up 22% compared to H1 2021 
  • Net income of €147 million compared to net income of €156 million in H1 2021
  • Adjusted EBITDA of €365 million, up 25% compared to H1 2021
  • Cash from Operations of €169 million and Free Cash Flow of €86 million
  • Net debt / LTM Adjusted EBITDA of 3.0x at June 30, 2022

 

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “I am very proud of the results our team delivered in the second quarter, including record VAR, record Adjusted EBITDA and strong Free Cash Flow generation. Demand remained strong across most end markets during the quarter, and our team continued to execute very well despite significant inflationary pressures. Both P&ARP and AS&I reported record Adjusted EBITDA as continued strength in packaging and industry demand more than offset continued weakness in automotive caused by the semiconductor shortage and other supply chain challenges. A&T reported very strong second quarter Adjusted EBITDA supported by a greater than 50% increase in aerospace shipments compared to the same quarter last year and continued strength in transportation, industry and defense (TID). Lastly, we generated Free Cash Flow of €60 million and reduced our leverage to 3.0x.” 

Mr. Germain continued, "Macroeconomic and geopolitical risks remain elevated and we expect inflationary pressures to continue, particularly for inputs like energy and regions more directly affected by the ongoing war in Ukraine. However, I am confident in our ability to continue to execute well through these challenging times. Based on our strong performance in the first half of this year and our current outlook for the second half which assumes no major deterioration on the geopolitical front, we are raising our guidance and now expect Adjusted EBITDA of €670 million to €690 million and Free Cash Flow in excess of €170 million in 2022. Following this, we expect our leverage to decline further by the end of the year. We remain focused on executing our strategy, driving operational performance, generating Free Cash Flow and increasing shareholder value.”


Forward Looking Statement

Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations, including the length and magnitude of disruption resulting from the global COVID-19 pandemic; the Russian invasion of Ukraine; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; supply disruptions; excessive inflation; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

Investor Relations

Jason Hershiser

+1 (443) 988 0600investor-relations@constellium.com

Corporate Communications U.S.

Delphine Dahan-Kocher

+1 (443) 420 7860delphine.dahan-kocher@constellium.com